Federal Advisory Committee Act: Overview of Advisory Committees Since
1993 (Testimony, 11/05/97, GAO/T-GGD-98-24).

GAO discussed its work on federal advisory committees, focusing on: (1)
whether Executive Order 12838, signed by the President on February 10,
1993, achieved its goal of reducing the number of discretionary advisory
committees by at least one-third by the end of fiscal year 1993 and the
extent to which the costs and number of committee members changed during
the same period; and (2) an overview of the General Services
Administration (GSA) oversight responsibilities under the Federal
Advisory Committee Act (FACA).

GAO noted that: (1) according to the President's annual reports on
advisory committees, the total number of advisory committees has
decreased from a high of 1,305 during 1993 to a low of 1,000 during
1996; (2) the reduction in the number of advisory committees since 1993
follows the President's 1993 executive order; (3) despite the overall
decline of advisory committees, their costs, number of committee
members, and number of meetings has increased; (4) under FACA and GSA
regulations implementing FACA, GSA's Committee Management Secretariat is
responsible for: (a) consulting with agencies on new and reauthorized
advisory committees to ensure that FACA requirements are met; (b) making
comprehensive annual reviews of each advisory committee and making
recommendations to the President and to the agency head or Congress on
any action the Secretariat deems necessary; (c) preparing the
President's annual report to Congress on the activities, status, and
changes in the composition of advisory committees; and (d) ensuring that
follow-up reports are prepared on the status of recommendations made by
presidential advisory committees; (5) FACA and GSA regulations require
that agencies consult with GSA before establishing new and reauthorized
advisory committees; (6) the President is required to report annually to
Congress on the activities, status, and changes in the composition of
advisory committees; (7) FACA requires the President , or his delegate,
to report to Congress within 1 year on his proposals for action or for
reasons for inaction on recommendations made by a presidential advisory
committee to the President; and (8) GAO has not assessed the merits of a
proposal to amend FACA to specify that it does not apply to committees
that are created by an entity other than an agency on federal official
and are not subject to actual management and control by federal
officials.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-98-24
     TITLE:  Federal Advisory Committee Act: Overview of Advisory 
             Committees Since 1993
      DATE:  11/05/97
   SUBJECT:  Advisory committees
             Executive orders
             Cost analysis
             Proposed legislation
             Cost control

             
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Cover
================================================================ COVER


Before the Subcommittee on Government Management, Information, and
Technology Committee on Government Reform and Oversight House of
Representatives

For Release on Delivery
Expected at
2:00 p.m., EST
Wednesday
Nov.  5, 1997

FEDERAL ADVISORY COMMITTEE ACT -
OVERVIEW OF ADVISORY COMMITTEES
SINCE 1993

Statement of L.  Nye Stevens
Director, Federal Management and Workforce Issues
General Government Division

GAO/T-GGD-98-24

GAO/GGD-98-24T


(410155)


Abbreviations
=============================================================== ABBREV

  FACA - Federal Advisory Committee Act
  GSA - General Services Administration
  NAS - National Academy of Sciences
  OMB - Office of Management and Budget

FEDERAL ADVISORY COMMITTEE ACT: 
OVERVIEW OF ADVISORY COMMITTEES
SINCE 1993
==================================================== Chapter STATEMENT

Mr.  Chairman and Members of the Subcommittee: 

I am pleased to be here today to discuss our work on federal advisory
committees.  Congress has recognized that when properly organized and
managed, advisory committees can provide a useful source of expertise
and advice.  However, in 1972, because of its concern about the
proliferation and lack of effective management of advisory
committees, Congress enacted the Federal Advisory Committee Act
(FACA).  FACA is intended to keep the number of advisory committees
to the minimum necessary by ensuring that (1) valid needs exist for
establishing and continuing advisory committees, (2) the committees
are properly managed and their proceedings are open to the public,
and (3) Congress is kept informed of their activities.  FACA directs
the General Services Administration (GSA) to establish and maintain a
Committee Management Secretariat to oversee advisory committee
activities.  In 1993, the President issued an executive order that
directed agencies to reduce by at least one-third the number of
discretionary advisory committees that they sponsored (those not
mandated by Congress or established by the President) by the end of
fiscal year 1993.  FACA committees are either established under
agency authority, authorized by Congress, mandated by Congress, or
established by the President. 

As agreed, we will focus our testimony today on (1) an assessment of
whether Executive Order 12838, signed by the President on February
10, 1993, achieved its goal of reducing the number of discretionary
advisory committees by at least one-third by the end of fiscal year
1993 and the extent to which the costs and number of committee
members changed during the same period; and (2) an overview of GSA's
oversight responsibilities under FACA.  Also as agreed, we will
continue our work on GSA's oversight of advisory committee activities
and additional issues that you and Senator John Glenn asked us to
review--advisory committee management, committee members'
independence, and participation of outside parties.  We will report
on this work at a later date. 

To assess whether the administration achieved its goal of reducing
the number of discretionary advisory committees and the extent to
which committees' costs and membership had changed, we analyzed the
annual reports of the President on federal advisory committees from
fiscal years 1993 through 1996 and reviewed GSA historical data.  To
identify GSA's Committee Management Secretariat oversight
responsibilities under FACA, we reviewed applicable laws,
regulations, and GSA guidance to agencies regarding advisory
committee activities and interviewed GSA's Committee Management
Secretariat officials. 


   NUMBER OF ADVISORY COMMITTEES
   HAS DECLINED, BUT THE COSTS AND
   NUMBER OF MEMBERS PER COMMITTEE
   HAVE RISEN
-------------------------------------------------- Chapter STATEMENT:1

According to the President's annual reports on advisory committees,
the total number of advisory committees decreased from a high of
1,305 during 1993 to a low of 1,000 during 1996, the most recent year
for which complete data were available.  Nearly all of this
reduction, 303 of the 305 drop, was due to cuts in the number of
discretionary advisory committees.  The reduction in the number of
advisory committees since 1993 follows the President's 1993 executive
order, which called for at least a one-third reduction in
discretionary advisory committees.  Discretionary committees do not
include advisory committees mandated by Congress and those created by
the President.  Appendix I shows the number of advisory committees by
the four establishment authorities during fiscal years 1993 through
1996. 

The Office of Management and Budget (OMB), in providing guidance to
agencies on the 1993 executive order, established a maximum ceiling
number of discretionary advisory committees for each agency and a
monitoring plan.  Under the guidance, agencies were to report their
committee levels annually to OMB and request its approval before
creating any new discretionary committees.  Later, OMB dropped the
requirement for prior approval of new committees as long as agencies
were beneath their approved ceilings.  In a June 1994 memorandum to
agency heads, the Vice President called for each agency to reduce
advisory committee costs by at least another 5 percent beyond the
savings achieved by the one-third reduction that resulted from
implementation of the executive order. 

According to GSA officials, and as reported in the President's annual
reports, the overall number of advisory committees was on the rise
before 1993, but in response to the 1993 executive order the number
started to drop in 1994.  (See app.  II.) Almost all of the reduction
in advisory committees (303 of 305) from fiscal year 1993 to 1996 was
attributable to the cut in discretionary committees.  Although the
President's goal of reducing the number of discretionary committees
by one-third was not achieved governmentwide by the end of fiscal
year 1993,\1 the number of discretionary committees dropped from 833
to 530 (36 percent) during the 4-year period; and the total number of
advisory committees dropped from 1,305 to 1,000 (23 percent).  The
530 discretionary committees that existed during fiscal year 1996
were 4 less than the governmentwide OMB ceiling of 534 committees. 
According to GSA, the number of discretionary committees has
continued to decline; and, as of mid-September 1997, the number was
479, 55 below the ceiling. 

Although the overall number of advisory committees declined during
the 4-year period, their costs and the number of committee members
increased.  The number of members serving on the committees increased
from 28,317 to 29,511 (4 percent), and the costs of committees
increased in nominal dollars from $143.9 to $148.5 million (3
percent).  However, in constant 1993 dollars, the costs decreased
from $143.9 to $138.3 million (4 percent) for the 4-year period. 

On average, the number of members per committee rose from 22 to 30,
and the costs per committee rose from $110,276 to $148,519 from
fiscal year 1993 to 1996.  In constant 1993 dollars, the average
costs per committee rose from $110,276 to $138,314 for the 4-year
period.  One possible explanation for part of the increase in per
committee costs and members is mergers.  According to a GSA report on
the implementation of the 1993 executive order, agencies recommended
196 discretionary advisory committees for merger.  Mergers would
include moving some of the functions and members to existing or new
committees, according to GSA Committee Management Secretariat
officials. 

Another possible explanation for some of the increase in costs is the
increase in the number of advisory committee meetings.  During the
same 4-year period, the number of advisory committee meetings
increased from 4,387 to 5,008 (14 percent). 

Although the number of meetings has risen, the percentage of open
meetings compared to the percentage that were closed and partially
closed has declined--49 percent of meetings were open in 1993
compared to 44 percent in 1996.  Advisory committee meetings can be
closed to the public if specific administrative procedures and
specific provisions of the Government in the Sunshine Act (5 U.S.C. 
552b) are followed.  These provisions provide for closed meetings to
protect, for example, matters that need to be kept secret in the
interest of national security or foreign policy, trade secrets, and
information of a personal nature, the disclosure of which would
constitute an invasion of privacy.  We did not examine the
appropriateness of the decisions to close or partially close the FACA
meetings.  Appendix III shows a breakdown of the number of open,
closed, and partially closed meetings from fiscal year 1993 to 1996. 


--------------------
\1 The fiscal year 1993 Annual Report of the President on Federal
Advisory Committees shows that 28 of 64 (44 percent) executive
departments, independent agencies, and other organizations either met
or exceeded the one-third reduction. 


   GSA'S COMMITTEE MANAGEMENT
   SECRETARIAT OVERSIGHT ROLE
-------------------------------------------------- Chapter STATEMENT:2

Under FACA and GSA regulations implementing FACA, GSA's Committee
Management Secretariat is responsible for

  -- consulting with agencies on new and reauthorized advisory
     committees to ensure that FACA requirements are met;

  -- making comprehensive annual reviews of each advisory committee
     and making recommendations to the President and to the agency
     head or Congress on any action the Secretariat deems necessary,
     including abolishing the committee or merging it with another
     committee;

  -- preparing the President's annual report to Congress on the
     activities, status, and changes in the composition of advisory
     committees; and

  -- ensuring that follow-up reports are prepared on the status of
     recommendations made by presidential advisory committees. 

For fiscal year 1997, GSA's Committee Management Secretariat had a
budget of $645,000 and 8 employees. 


      CONSULTATION ON ADVISORY
      COMMITTEES
------------------------------------------------ Chapter STATEMENT:2.1

FACA and GSA regulations require that agencies consult with GSA
before establishing new and reauthorized advisory committees.  As
part of this consultation, agencies are required to submit charters
and justification letters, which must contain specific information. 
FACA outlines that agencies are to include 10 specific items in the
charter, including the committee's objectives and scope of
activities, the time period necessary to carry out its purpose, and
the estimated annual staff years and costs.  GSA regulations state
that agencies must address three items in the justification letter,
including why the committee is essential to conduct the agency's
business, why the committee's functions cannot be performed by the
agency or other means, and how the agency plans to attain balanced
membership.  GSA's role is to review agency proposals to establish
advisory committees and determine whether FACA requirements are met. 
The regulations say that GSA is to review the proposals and notify
the agency of its views within 15 days, if possible.  However, GSA
does not have the authority to stop the formation of an advisory
committee. 

GSA regulations also require that agencies publish a notice in the
Federal Register when either new or reauthorized discretionary
advisory committees are established.  Committees mandated by Congress
or established by the President are not required to issue such
notices.  New discretionary committee notices are required to address
three of the specific items that must be contained in the charter and
justification letter.  These items include a description of the
nature and purpose of the committee, a discussion of the agency's
plan to attain a fairly balanced membership, and a statement that the
committee is necessary and in the public interest.  Notices for
reauthorized committees do not need to include these three items. 


      COMPREHENSIVE ANNUAL REVIEWS
------------------------------------------------ Chapter STATEMENT:2.2

FACA requires GSA to make an annual comprehensive review of each
advisory committee to determine whether it is carrying out its
purpose, whether its responsibilities should be revised, and whether
it should be abolished or merged with another committee.  After
completing the reviews, GSA is required to recommend to the President
and to the agency head or Congress any actions GSA deems should be
taken. 

GSA regulations require that agencies prepare an annual report for
each committee, including the agencies' recommendations for
continuing, merging, or terminating committees.  For continuing
committees (not new or terminated), agencies are required to describe
such things as how the committee accomplishes its purpose, the
frequency of meetings and the reason for continuing the committee,
and why it was necessary to have closed committee meetings if such
meetings were held.  The committee's annual reports also are to
include the committee costs. 

GSA procedures call for it to use the data it receives in the
agencies' annual reports, including the agencies' recommendations to
continue or terminate the committees, in conducting the comprehensive
annual review and in preparing the President's annual report. 


      PRESIDENT'S ANNUAL REPORTS
      TO CONGRESS
------------------------------------------------ Chapter STATEMENT:2.3

The President is required to report annually to Congress on the
activities, status, and changes in the composition of advisory
committees.  The annual reports are due to Congress by December 31
for each preceding fiscal year.  GSA prepares the annual reports for
the President with information provided in agencies' annual reports
on each advisory committee that existed during the fiscal year. 


      FOLLOW-UP REPORTS TO
      CONGRESS ON PRESIDENTIAL
      ADVISORY COMMITTEE
      RECOMMENDATIONS
------------------------------------------------ Chapter STATEMENT:2.4

FACA requires the President, or his delegate, to report to Congress
within 1 year on his proposals for action or reasons for inaction on
recommendations made by a presidential advisory committee to the
President.  According to FACA's legislative history, these follow-up
reports would help justify the investments in the advisory committees
and provide accountability to the public and Congress that the
recommendations are being addressed. 

According to GSA regulations, the agency providing support to the
advisory committee is responsible for preparing and transmitting the
follow-up report to Congress.  However, the regulations also state
that the Secretariat is responsible for ensuring that the follow-up
reports are prepared by the agency supporting the presidential
committee and may solicit OMB and other appropriate organizations for
help, if needed to ensure compliance. 


   RECENT PROPOSAL TO AMEND FACA
-------------------------------------------------- Chapter STATEMENT:3

A focus of today's hearing is the proposal to amend FACA to specify
that the act does not apply to committees that are created by an
entity other than an agency or federal official and are not subject
to actual management and control by federal officials.  This proposal
is in response to a recent decision by the U.S.  Court of Appeals for
the District of Columbia that FACA applied to panels of the National
Academy of Sciences (NAS). 

This development has not been the focus of our work and we have not
assessed the merits of the issue.  I would like to make two
observations, however.  First, the extent to which these entities are
included under FACA will likely have an impact on GSA in its
oversight capacity.  Under the Court of Appeals decision, according
to OMB, more than 450 NAS panels could potentially become subject to
FACA and therefore fall under GSA purview.  The inclusion of NAS
panels, and perhaps other similarly situated entities used by other
organizations, could pose resource implications for GSA whose staff
of 8 employees is currently responsible for overseeing about 1,000
advisory committees. 

Second, the inclusion of additional entities under FACA in accordance
with the Court of Appeals decision might also affect the federal
agencies that sponsor the panels (albeit somewhat indirectly in the
instance of the NAS.) FACA requires that advisory committees be
managed and controlled by a federal agency.  This has not been the
case for those committees that were made subject to FACA pursuant to
the Court of Appeals decision.  Management and control generally
means that meetings are to be chaired or attended by an agency
employee and that certain meeting-related decisions--such as whether
a particular meeting should be open or closed to the public--are to
be made by the agency.  Agencies also provide administrative support
to their committees.  It is unclear whether agencies would be
required to provide the same active participation in the activities
of NAS-type panels.  If they did, certain costs would have be
incurred.  While we do not know what those costs might be, we know
from our analysis of GSA records that the average annual cost for
federal staff involved in the 1,000 advisory committees in existence
during fiscal year 1996 was about $75,000 per committee.  We are not
suggesting that the possibility of additional costs is a reason for
deciding whether or not to include certain entities under FACA.  But,
we do believe it is important for the Congress to be aware of such
costs as it deliberates on the matter. 


------------------------------------------------ Chapter STATEMENT:3.1

Mr.  Chairman, this concludes my statement.  I will be pleased to
answer any questions you or any Members of the Subcommittee may have. 


DISTRIBUTION OF FEDERAL ADVISORY
COMMITTEES BY ESTABLISHMENT
AUTHORITY DURING FISCAL YEARS
1993-1996
=========================================================== Appendix I

                                             Establishment authority
                                  ----------------------------------------------
                                      Discretionary          Nondiscretionary
                                        committees              committees
                                  ----------------------  ----------------------
                                              Authorized    Mandated  Presidenti
                                      Agency          by          by          al
Fiscal Year                        authority    Congress    Congress   directive
--------------------------------  ----------  ----------  ----------  ----------
1993                                     401         432         444          28
1994                                     316         423         429          27
1995                                     325         318         438          29
1996                                     286         244         438          32
--------------------------------------------------------------------------------
Source:  Annual Reports of the President on Federal Advisory
Committees. 


FEDERAL ADVISORY COMMITTEE
STATISTICS DURING FISCAL YEARS
1993-1996
========================================================== Appendix II

                                       Total   Number of   Total costs
                                      number  discretion   in millions    Number
                                          of         ary      (nominal        of
Fiscal year                       committees  committees      dollars)   members
--------------------------------  ----------  ----------  ------------  --------
1993                                   1,305         833        $143.9    28,317
1994                                   1,195         739         133.4    30,446
1995                                   1,110         643         157.0    29,766
1996                                   1,000         530         148.5    29,511
--------------------------------------------------------------------------------
Source:  Annual Reports of the President on Federal Advisory
Committees. 


TYPES OF FEDERAL ADVISORY
COMMITTEE MEETINGS DURING FISCAL
YEARS 1993-1996
========================================================= Appendix III

                                              Type of meetings
                                       -------------------------------
                                                       Partial
                                                            ly
Fiscal year                              Open  Closed   closed   Total
-------------------------------------  ------  ------  -------  ------
1993                                    2,162   1,210    1,015   4,387
1994                                    1,826   1,502      781   4,109
1995                                    2,443   2,233      503   5,179
1996                                    2,208   2,379      421   5,008
----------------------------------------------------------------------
Source:  Annual Reports of the President on Federal Advisory
Committees. 


*** End of document. ***